The U.S. has an aging housing stock and many homeowners are planning to age in place rather than move out of their homes, but research suggests homeowners are spending more to improve homes than maintain them, REALTOR Magazine reports. A report from home remodeling resource HomeAdvisor finds that homeowners spend approximately $3.70 less for every year since a home was built.
Researchers say the growing cultural focus on design aesthetics and quality of life as well as newer and better home improvement tools may be leading to the uptick in home improvement spending. Room remodels have been the most popular home improvement projects, with bathrooms topping HomeAdvisor’s list. Homeowners also are prioritizing new appliances, roof replacements, and hardwood refinishing.
Motivations for home improvements can differ depending on age group. For example, millennials were more likely than other generations to say they completed home projects to increase their home’s value. Baby boomers and Generation X, on the other hand, tended to be more motivated to “modernize” their homes. Millennials and the silent generation also were motivated to “improve aesthetics and design.”
"It makes sense that first time home buyers complete more home improvement projects and spend more money on home services," says Mischa Fisher, HomeAdvisor's chief economist and author of the report. "Many of the millennials who bought a home in the last few years are seeking upgrades to increase the value of their homes and improve aesthetics. This focus on return on investment from millennials is likely due to a combination of typical youthful focus on wealth accumulation and their comparatively poorer financial situation driving a hunger to recover relative to their older cohorts."
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